SAN ANTONIO--(BUSINESS WIRE)--NuStar GP Holdings, LLC (NYSE: NSH) today announced that distributable
cash flow available to unitholders for the second quarter of 2012 was
$22.1 million, or $0.52 per unit, compared to $21.0 million, or $0.49
per unit, for the second quarter of 2011. In addition, the company
announced that its board of directors has declared a second quarter
distribution of $0.51 per unit. This distribution represents an increase
of $0.015 per unit, or 3.0 percent, over the $0.495 distribution for the
second quarter of 2011. The second quarter 2012 distribution will be
paid on August 14, 2012, to holders of record as of August 7, 2012.

The company reported a second quarter net loss of $33.2 million, or
$0.78 per unit, compared to net income of $22.1 million, or $0.52 per
unit, earned in the second quarter of 2011. Negative earnings in NuStar
Energy’s asphalt and fuels marketing segment caused by continued weak
demand for asphalt, reduced asphalt gross margins, lower margins on the
sales of products in the company’s fuels marketing operations and
non-cash asset impairment charges primarily related to the expected sale
of 50% of the company’s asphalt operations were the main causes for the
company’s second quarter earnings loss.

“NuStar GP Holdings, LLC should benefit from NuStar Energy L.P.’s
projections for increased EBITDA in the last half of 2012,” said Curt
Anastasio, Chief Executive Officer and President of NuStar Energy L.P.
and NuStar GP Holdings, LLC. “In addition, expected EBITDA growth at
NuStar Energy L.P. as a result of their large internal growth program
should have a positive impact on the future growth of NuStar GP
Holdings, LLC’s distributable cash flow and distributions.”

A conference call with management is scheduled for 10:00 a.m. ET (9:00
a.m. CT) today, July 27, 2012, to discuss the financial results for the
second quarter of 2012. Investors interested in listening to the
presentation may call 800/622-7620, passcode 95963671. International
callers may access the presentation by dialing 706/645-0327, passcode
95963671. The company intends to have a playback available following the
presentation, which may be accessed by calling 800/585-8367, passcode
95963671. A live broadcast of the conference call will also be available
on the company’s Web site at www.nustargpholdings.com.

NuStar GP Holdings, LLC is a publicly traded limited liability company
that owns the two percent general partner interest, a 14.2 percent
limited partner interest and the incentive distribution rights in NuStar
Energy L.P., one of the largest asphalt refiners and marketers in the
U.S. and the second largest independent liquids terminal operator in the
nation, NuStar has operations in the United States, Canada, Mexico, the
Netherlands, including St. Eustatius in the Caribbean, the United
Kingdom and Turkey. For more information, visit NuStar GP Holdings,
LLC’s Web site at www.nustargpholdings.com.

This release serves as qualified notice to nominees under Treasury
Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of
NuStar’s distributions to foreign investors are attributable to income
that is effectively connected with a United States trade or business.
Accordingly, all of NuStar’s distributions to foreign investors are
subject to federal income tax withholding at the highest effective tax
rate for individuals and corporations, as applicable. Nominees, and not
NuStar, are treated as the withholding agents responsible for
withholding on the distributions received by them on behalf of foreign
investors.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding
future events.All forward-looking statements are based on the
company's beliefs as well as assumptions made by and information
currently available to the company.These statements reflect the
company's current views with respect to future events and are subject to
various risks, uncertainties and assumptions.These risks,
uncertainties and assumptions are discussed in NuStar Energy L.P. and
NuStar GP Holdings, LLC’s 2011 annual reports on Form 10-K and
subsequent filings with the Securities and Exchange Commission.

NuStar GP Holdings, LLC

Consolidated Financial Information

(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2012

2011

2012

2011

Statement of Income Data:

Equity in (loss) earnings of NuStar Energy L.P.

$

(32,428

)

$

22,919

$

(20,656

)

$

34,261

General and administrative expenses

(795

)

(742

)

(1,652

)

(1,486

)

Other (expense) income, net

(30

)

(46

)

106

(665

)

Interest expense, net

(151

)

(165

)

(284

)

(343

)

(Loss) income before income tax benefit

(33,404

)

21,966

(22,486

)

31,767

Income tax benefit

196

95

324

477

Net (loss) income

$

(33,208

)

$

22,061

$

(22,162

)

$

32,244

Basic and diluted net (loss) income per unit

$

(0.78

)

$

0.52

$

(0.52

)

$

0.76

Equity in (Loss) Earnings of NuStar Energy L.P.:

General partner interest

$

(5,131

)

$

1,673

$

(4,800

)

$

2,071

General partner incentive distribution

9,816

8,963

19,632

17,531

General partner's interest in (loss) earnings and incentive
distributions of NuStar Energy L.P.

4,685

10,636

14,832

19,602

Limited partner interest in (loss) earnings of NuStar Energy L.P.

(36,392

)

13,004

(34,046

)

16,101

Amortization of step-up in basis related to NuStar Energy L.P.'s
assets and liabilities

(721

)

(721

)

(1,442

)

(1,442

)

Equity in (loss) earnings of NuStar Energy L.P.

$

(32,428

)

$

22,919

$

(20,656

)

$

34,261

Distributable Cash Flow (Note 1):

Cash distributions from NuStar Energy L.P. associated with:

General partner interest

$

1,782

$

1,627

$

3,564

$

3,219

General partner incentive distribution

9,816

8,963

19,632

17,531

Limited partner interest - common units

11,223

11,213

22,434

22,235

Total cash distributions expected from NuStar Energy L.P.

22,821

21,803

45,630

42,985

Deduct expenses of NuStar GP Holdings, LLC:

General and administrative expenses

(795

)

(742

)

(1,652

)

(1,486

)

Income tax benefit

196

95

324

477

Interest expense, net

(151

)

(165

)

(284

)

(343

)

Distributable cash flow

$

22,071

$

20,991

$

44,018

$

41,633

Weighted average number of common units outstanding

42,575,563

42,544,659

42,574,991

42,544,659

Distributable cash flow per unit

$

0.518

$

0.493

$

1.033

$

0.978

Cash distributions to be paid to the unitholders of NuStar GP
Holdings, LLC:

Distribution per unit

$

0.510

$

0.495

$

1.020

$

0.975

Total distribution

$

21,713

$

21,059

$

43,433

$

41,481

NuStar GP Holdings, LLC

Consolidated Financial Information - Continued

(Unaudited, Thousands of Dollars)

Notes:

1.

NuStar GP Holdings, LLC utilizes distributable cash flow as a
financial measure, which is not defined in United States generally
accepted accounting principles. Management uses this financial
measure because it is a widely accepted financial indicator used by
investors to compare general partner performance. In addition,
management believes that this measure provides investors an enhanced
perspective of the ability to make a minimum quarterly distribution.
Distributable cash flow is not intended to represent cash flows for
the period, nor is it presented as an alternative to net income. It
should not be considered in isolation or as a substitute for a
measure of performance prepared in accordance with United States
generally accepted accounting principles.

The following is a reconciliation of net (loss) income to
distributable cash flow and net cash (used in) provided by
operating activities: